Full Press Release Details
Astrana Health, Inc. Reports Third Quarter 2025
Company to Host Conference Call on Thursday,
November 6, 2025, at 2:30 p.m. PT/5:30 p.m. ET
ALHAMBRA, Calif., November 6, 2025 /PRNewswire/
-- Astrana Health, Inc. ("Astrana," and together with its subsidiaries and affiliated entities, the "Company")
(NASDAQ: ASTH), a leading provider-centric, technology-powered healthcare company enabling providers to deliver accessible, high-quality,
and high-value care to all, today announced its consolidated financial results for the third quarter ended September 30, 2025.
"Astrana delivered solid third quarter results
and demonstrated strong momentum in our first quarter of combined operations with Prospect Health," said Brandon Sim, President
and Chief Executive Officer. "Prospect's performance exceeded our expectations, and integration is progressing well, expanding
our scale, capabilities, and physician reach across key markets. While our full-year outlook reflects the updated timing of certain full-risk
contract transitions, which we expect to complete in the first quarter of 2026, underlying clinical and cost trend performance across
both the legacy Astrana and Prospect businesses remain strong. We continue to execute with discipline and focus on building a more coordinated,
high-quality, and accessible care delivery platform for the long term."
Financial Highlights for Third Quarter Ended September 30,
All comparisons are to the three months ended
September 30, 2024 unless otherwise stated.
Financial Highlights for Nine Months Ended September 30, 2025:
All comparisons are to the nine months ended
September 30, 2024 unless otherwise stated.
(1) See "Reconciliation of Net
Income to EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin" and "Use of Non-GAAP Financial Measures" below for additional
Recent Operating Highlights
| Announced a strategic partnership with Intermountain Health to expand access to coordinated, high-quality care across southern Nevada. The collaboration integrates Astrana's provider network and clinics with Intermountain's health system capabilities, with the goal of enhancing primary care access, improving patient outcomes, and advancing the region's healthcare infrastructure through shared technology and care management programs. | ||
| Announced a new partnership with a provider group in Southern California within the Care Enablement business. The group serves more than 40,000 members in value-based care arrangements across all lines of business and will onboard to the Astrana platform in the first half of 2026. |
Segment Results for three months ended September 30,
All comparisons are to the three months ended
September 30, 2024 unless otherwise stated.
| Three Months Ended September 30, 2025 | ||||||||||||||||||||||||
| (in thousands) | Care Partners | Care Delivery | Care Enablement | Intersegment Elimination | Corporate Costs | Consolidated Total | ||||||||||||||||||
| Total revenues | $ | 897,730 | $ | 86,871 | $ | 87,340 | $ | (115,893 | ) | $ | - | $ | 956,048 | |||||||||||
| % change vs. prior year quarter | 97 | % | 150 | % | 113 | % | ||||||||||||||||||
| Cost of services | 788,427 | 72,210 | 44,067 | (45,848 | ) | - | 858,856 | |||||||||||||||||
| General and administrative | 72,066 | 14,346 | 17,756 | (69,964 | ) | 28,183 | 62,387 | |||||||||||||||||
| Depreciation and amortization | 11,953 | 1,332 | 2,115 | - | 195 | 15,595 | ||||||||||||||||||
| Total expenses | 872,446 | 87,888 | 63,938 | (115,812 | ) | 28,378 | 936,838 | |||||||||||||||||
| Income (loss) from operations | $ | 25,284 | $ | (1,017 | ) | $ | 23,402 | $ | (81 | ) (1) | $ | (28,378 | ) | $ | 19,210 | |||||||||
| % change vs. prior year quarter | (35 | )% | (25 | )% | 271 | % |
(1) Income from operations for the
intersegment elimination represents rental income from segments renting from other segments. Rental income is presented within other income
which is not presented in the table.
Astrana is providing the following updated guidance
for total revenue and Adjusted EBITDA for the year ending December 31, 2025 based on the Company's existing business, current view
of existing market conditions, and assumptions.
| ($ in millions) | Year Ending December 31, 2025 | |||||||
| Guidance Range | ||||||||
| Low | High | |||||||
| Total revenue | $ | 3,100 | $ | 3,180 | ||||
| Adjusted EBITDA | $ | 200 | $ | 210 |
See "Guidance Reconciliation of Net Income
to EBITDA and Adjusted EBITDA" and "Use of Non-GAAP Financial Measures" below for additional information. There can
be no assurance that actual amounts will not be materially higher or lower than these expectations. See "Forward-Looking Statements"
below for additional information.
Conference Call and Webcast Information:
Astrana will host a conference call at 2:30 p.m.
PT/5:30 p.m. ET today (Thursday, November 6, 2025), during which management will discuss the results of the third quarter ended
September 30, 2025. To participate in the conference call, please use the following dial-in numbers about 5 minutes prior to the
scheduled conference call time:
| U.S. & Canada (Toll-Free): | +1 (877) 858-9810 |
| International (Toll): | +1 (201) 689-8517 |
The conference call can also be accessed via webcast at: https://event.choruscall.com/mediaframe/webcast.html?webcastid=J8XerGef
An accompanying slide presentation will be available
in PDF format on the "IR Calendar" page of the Company's website (https://ir.astranahealth.com/news-events/ir-calendar)
after issuance of the earnings release and will be furnished as an exhibit to Astrana's current report on Form 8-K to be filed
with the SEC, accessible at www.sec.gov.
Those who are unable to attend the live conference
call may access the recording at the above webcast link, which will be made available shortly after the conclusion of the call.
Note About Consolidated Entities
The Company consolidates entities in which it
has a controlling financial interest. The Company consolidates subsidiaries in which it holds, directly or indirectly, more than 50%
of the voting rights, and variable interest entities ("VIEs") in which the Company is the primary beneficiary. Noncontrolling
interests represent third party equity ownership interests in the Company's consolidated entities (including certain VIEs). The
amount of net income attributable to noncontrolling interests is disclosed in the Company's consolidated statements of income.
About Astrana Health, Inc.
Astrana Health is a physician-centric, AI-powered
healthcare company committed to delivering high-quality, patient-centered care. Built from the physician's perspective, Astrana combines
its scalable care delivery infrastructure, proprietary technology platform, and aligned provider networks to enable proactive, preventive
care at scale - improving patient outcomes, enhancing patient experiences, supporting provider well-being, and driving greater value across
the healthcare system.
Today, Astrana supports more than 20,000 providers
and over 1.6 million patients in value-based care arrangements through its affiliated provider networks, management services organization,
and integrated care delivery clinics spanning primary, specialty, and ancillary care. Together, Astrana is building the healthcare system
we all deserve - one that delivers better care, better experiences, and better outcomes for all. For more information, visit www.astranahealth.com.
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements about the Company's guidance
for the year ending December 31, 2025, ability to meet operational goals, ability to meet expectations in deployment of care coordination
and management capabilities, ability to decrease cost of care while improving quality and outcomes, ability to deliver sustainable revenue
and EBITDA growth as well as long-term value, ability to respond to the changing environment, statements about the Company's liquidity,
and successful completion and implementation of strategic growth plans, acquisition strategy, and merger integration efforts. Forward-looking
statements reflect current views with respect to future events and financial performance and therefore cannot be guaranteed. Such statements
are based on the current expectations and certain assumptions of the Company's management, and some or all of such expectations
and assumptions may not materialize or may vary significantly from actual results. Actual results may also vary materially from forward-looking
statements due to risks, uncertainties and other factors, known and unknown, including the risk factors described from time to time in
the Company's reports to the SEC, including, without limitation the risk factors discussed in the Company's Annual Report
on Form 10-K for the year ended December 31, 2024, and subsequent quarterly reports on Form 10-Q. Any forward-looking statements
made by the Company in this release speaks only as of the date on which it is made. The Company undertakes no obligation to publicly
update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required
by any applicable securities laws.
FOR MORE INFORMATION, PLEASE CONTACT:
Grant Hesser, Investor Relations
ASTRANA HEALTH, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
| September 30, 2025 | December 31, 2024 | |||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 462,227 | $ | 288,455 | ||||
| Investment in marketable securities | 1,221 | 2,378 | ||||||
| Receivables, net (including amounts with related parties) | 381,215 | 275,990 | ||||||
| Income taxes receivable | - | 19,316 | ||||||
| Other receivables | 9,891 | 29,496 | ||||||
| Prepaid expenses and other current assets | 23,162 | 22,861 | ||||||
| Loans receivable | 5,913 | - | ||||||
| Total current assets | 883,629 | 638,496 | ||||||
| Non-current assets | ||||||||
| Property and equipment, net | 56,164 | 14,274 | ||||||
| Intangible assets, net | 285,060 | 118,179 | ||||||
| Goodwill | 863,266 | 419,253 | ||||||
| Income taxes receivable, non-current | 15,943 | 15,943 | ||||||
| Loans receivable, non-current | 48,474 | 51,266 | ||||||
| Investments in other entities - equity method | 18,462 | 39,319 | ||||||
| Investments in privately held entities | 8,896 | 8,896 | ||||||
| Operating lease right-of-use assets | 33,936 | 32,601 | ||||||
| Other assets | 23,356 | 16,667 | ||||||
| Total non-current assets | 1,353,557 | 716,398 | ||||||
| Total assets (1) | $ | 2,237,186 | $ | 1,354,894 | ||||
| Liabilities, Mezzanine Deficit, and Stockholders' Equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable and accrued expenses | $ | 209,747 | $ | 106,142 | ||||
| Fiduciary accounts payable | 4,476 | 8,223 | ||||||
| Medical liabilities | 333,969 | 209,039 | ||||||
| Income taxes payable | 4,919 | - | ||||||
| Operating lease liabilities | 7,181 | 5,350 | ||||||
| Current portion of long-term debt | 47,865 | 9,375 | ||||||
| Other liabilities | 21,773 | 27,479 | ||||||
| Total current liabilities | 629,930 | 365,608 | ||||||
| Non-current liabilities | ||||||||
| Deferred tax liability | 4,429 | 4,555 | ||||||
| Operating lease liabilities, net of current portion | 30,171 | 30,654 | ||||||
| Long-term debt, net of current portion and deferred financing costs | 1,002,026 | 425,299 | ||||||
| Other long-term liabilities | 15,906 | 14,610 | ||||||
| Total non-current liabilities | 1,052,532 | 475,118 | ||||||
| Total liabilities (1) | 1,682,462 | 840,726 | ||||||
| Mezzanine deficit | ||||||||
| Noncontrolling interest in Allied Physicians of California, a Professional Medical Corporation ("APC") | (234,351 | ) | (202,558 | ) | ||||
| Stockholders' equity | ||||||||
| Preferred stock, $0.001 par value per share; 5,000,000 shares authorized, and zero shares issued and outstanding as of September 30, 2025 and December 31, 2024 | - | - | ||||||
| Common stock, $0.001 par value per share; 100,000,000 shares authorized, 49,383,857 and 47,929,872 shares issued and outstanding, excluding 9,937,167 and 10,603,849 treasury shares, as of September 30, 2025 and December 31, 2024, respectively | 49 | 48 | ||||||
| Additional paid-in capital | 473,008 | 426,389 | ||||||
| Retained earnings | 302,486 | 286,283 | ||||||
| Total stockholders' equity | 775,543 | 712,720 | ||||||
| Non-controlling interest | 13,532 | 4,006 | ||||||
| Total equity | 789,075 | 716,726 | ||||||
| Total liabilities, mezzanine deficit, and stockholders' equity | $ | 2,237,186 | $ | 1,354,894 |
(1) The Company's condensed consolidated
balance sheets include the assets and liabilities of its consolidated VIEs. The condensed consolidated balance sheets include total assets
that can be used only to settle obligations of the Company's consolidated VIEs totaling $1,302.4 million and $712.3 million as of
September 30, 2025 and December 31, 2024, respectively, and total liabilities of the Company's consolidated VIEs for which
creditors do not have recourse to the general credit of the primary beneficiary of $383.3 million and $207.9 million as of September 30,
2025 and December 31, 2024, respectively. These VIE balances do not include $173.9 million of investment in affiliates and $30.6
million of amounts due from affiliates as of September 30, 2025, and $224.9 million of investment in affiliates and $48.1 million
of amounts due to affiliates as of December 31, 2024, as these are eliminated upon consolidation and not presented within the condensed
consolidated balance sheets.